Campus IPO

Campus Activewear IPO Details

In 2017, global private equity player TPG was looking to make additions to its investment portfolio. And the global investor, which has been investing in India for about two decades, settled on the footwear brand Campus. Around four years later, TPG’s bet seems to have paid off. 

Today, Campus is the largest sports and athleisure footwear brand in India in terms of value and volume. As of FY21, it had a market share of 17% in the branded sports and athleisure footwear space. 

And now, the footwear maker is launching its public issue in a bid to hit the bourses. The Campus IPO is all set to be launched soon.

All about the Campus IPO

Campus is one of the few established homegrown brands in the sports and athleisure footwear segment, which is dominated by global players. It has an extensive product portfolio including 1,433 active styles for men, 241 active styles for women and 485 active styles for kids and children. In FY21, it launched 583 designs. 

Through this large product portfolio, it caters to consumers across different demographics and price range (entry to premium). It covers more than 85% of the total addressable market for sports and athleisure footwear in India.

Campus Activewear also has a large network of 425 distributors, which fulfil orders of more than 19,200 retailers across India. The company also sells its products through direct-to-consumer online channels such as Flipkart, Myntra and Fynd.

Financials 

Revenue: 9.3%;

Net Profit: -16.7% (FY19-21 CAGR)

	FY19	FY20	FY21
Revenue	595 crores	732 crores	711 crores
Net Profit	39 crores	62 crores	27 crores

Strengths

• Sells products across price points – entry-level (at or below ₹1,049), semi-premium (between ₹1,050 and ₹1,499) and premium (at or above ₹ 1,500)
• The sales contribution from its premium segment has increased to 40% in the nine months ended December 2021 from 31% in FY19
• Offers a wide range of style, colour, size and functionality options
• Owns and operates five manufacturing facilities across India with an installed annual capacity for assembly of 2.8 crore pairs
• Has a diverse presence across retail formats, including 85 exclusive brand outlets 

Risks

• Operates in a highly competitive sector which includes global brands such as Adidas, Puma and Nike
• Pandemic like events could adversely impact the sales 
• A significant portion of the revenue comes from the Northern part of India
• Trade receivables, which is the amount owed to the company, stood at ₹122 crore as of December 2021 

Good to know

India’s sports and athleisure footwear market is highly underpenetrated. This space is estimated to grow at a 25% CAGR between 2021 and 2025. Being a major player in this segment, Campus Activewear could benefit from this double-digit growth.